If you get 300x more money than your best paid employee, this suggests you do the work of 300 of your best paid employees. I really want a CEO show me how exactly they do this ...
man you have a mindset of an employee so you cannot comprehend it.... I will illustrate it for you on real life example from one company where I worked in 2013. I worked fulltime for one year and was paid 900 eur a month while our CFO was doing nothing and earning 20x more than me. Why? He went to Brazil for 2 weeks, played golf there with some executives of a big company and returned with a deal which was in millions of eur and could fund my salary and all other employees in the company for half a year. I think the fact that he earned only 20-25 times more than me was actually unfair to him.
@@qasim5279 lot of CEOs don’t take that responsibility Look at Johnson & Johnson after the whole cancer causing talc product situation Are their top executives paying the price
Another Fun Fact: CEO's DON'T make 100 times the average worker at their respective companies on average. That's silly. They actually make OVER 300 times the average worker at their respective companies. In fact, the CEO of Walmart makes OVER 900 times.
In 2008, I was working as an assistant front desk manager for a big large company. The HR manager came and told me I had to take a pay cut cause revenue was way down or I can be laid off and get unemployment. I stayed, took a 20% pay cut (over $200) and worked 10 more hours a week. That same year, the hotel got the coveted five stars and four diamond rating, the GM of the hotel got over a million bonus and a big raise.
So screwed up, squeeze the folks who run the business, and glutinous at the top, like hunger games capitol where they drink something to throw up so they can eat more while others starve
this must change.. Corporations have become mini 'empires' where the People at the top get all the money and glory for the work that the ones at the bottom are actually doing for almost nothing. We don't remember the people that built the Pyramids, only the 'Kings' .
I compared my salary to my CEO’s salary. Let me say that I made a pretty good salary. I determined that the CEO earned my annual salary in the first 2 1/2 days of the year.
They really need so set a law that stops one employee from making 100000x more than the other employees. Especially when those in management and higher don't do any real work
While watching this entire thing I kept missing the part where they mention the point of this video. What is the message? Are CEOs bad? Should we all become CEOs? Is there anything the average joe can do to in any way fight these numbers?
The only way to fight these numbers is to convince banks to let you borrow millions of dollars in long-term, fixed-rate, principal-amortizing (interest only works too) loans to buy real estate, then borrow against the value of said real estate in the form of cash-out refinances as it inflates in value; then, use that borrowed money to invest in any business opportunity that's decent in value, and repeat said process till you can finally begin to amass enough resources to fund the building of a self-sustaining agricultural and industrial commune in the middle of the Nevada desert. It takes 5-10 years to get to that step, though.
I thought the video very clearly delivered what the title promised. Why do they earn so much? - Because of a company's internal notion that stock rises are tied to excec performance - Because of a rise in the gross domestic output that isn't reflected in worker's wages rising.... and so on and so forth.
"Are CEOs Bad" well CNBC isn't going to make a claim like that in a story they are covering. But the interviewee says it all in his answer to the question: is the solution to closing this gap obvious: he says "shame", shaming these people and company
@@justdidthis is not. I was on $130k in New York and rent sucked most away . Good salary for good standard of life in NY at least $180k. Poverty line is around $60k
These days, CEOs manage with a team of skilled and mostly highly paid executives. They also work with highly paid boards of directors. It doesn't make sense that they would earn significantly more than management below them. Would you pay astronomical dollars to someone who has to have their hand held? To someone who manages a company that doesn't do anything spectacular? A company that has a captured market for years? A company that has static growth?
Ya some have it easy. There was a story though of some brother taking over as ceo of some airline or airplane company from the family and then bankrupting the company within a year. Some small companies actually give ownership to employees. It's their company, so they can do what they want with it.
That's not entirely accurate. That's like saying that the President doesn't work hard and has his "hand held" because he has generals, secretaries, senators, mayors, police chiefs and whatever.. CEOs certainly work hard keeping things together even though they have it a lot better.
@@MrEVAQ not entirely accurate but there is truth in my comment which refers to the C Suites who become administrators and get paid disproportionate amounts to do their work. Yes some work hard and deserve to get paid well. Value for money is what I say.
Undercut the company you're working for. Swipe their talent. Become a saboteur by getting the government to investigate their undealt harassment cases.
The issue is that compensating executives with stock options and stock-related benefits causes many executives to have a short-term focus on the stock price. I. E. cutting salaries, keeping wages low and other things are the result. It helps stock value in the short-run (and therefore their compensation) but typically doesn't promote wise long-term decisions.
On stock compensation, many CEOs would rather pay long-term capital gains tax than the higher short-term capital gains tax. CEOs will maximize their tax savings via retirement accounts also, even if they have to wait until age 59.5. Bezos, Musk, Gates, Zuckerberg, Larry Page, just go down the Fortune 500 list…. They hold stock for the long term, sometimes decades. CEOs aren’t day traders, they think bigger, or they will get fired by the board, shareholders, etc.
@@sammen89 Bezos, Musk, Gates, Zuckerberg, Larry Page Owner of the company, owner of the company, owner of the company. When they cede control they still choose to invest a part of their portfolio though.
They should interview that CEO that raised the minimum wage to $70k. Sqwak Alley? The company was performing better and he has cut turnover in half. People have more freedom. And he is still wealthy.
Switching jobs is the only real way to get any sort of substantial raise. Although it still isn't a sure thing until you find the better job and then get it.
@@KeaneKamina Nah its a pretty real take. You gotta take huge risk and literally work 24/7 to be a CEO. Most workers rather just come home and watch Netflix instead of grind and invest their money
@@KeaneKamina it’s a fine take. Can’t do anything about the free market and what the top of the top are earning. But you can certainly stop financing new cars and get on a budget
this is propaganda. If the employees all live together in dumpy towns eating dumpy food, then that is the livable wage. Go get a tiny house, and maybe learn more about how economics works
@IAmDeshaun No, that is not what livable means either. Livable means having enough money for food, groceries, rent, without having to work 3 jobs. This also applies to their children. I doubt anyone wants to see children starve. In almost every state minimum wage is too low to afford basic necessities.
@IAmDeshaun So the logical flaw in your argument is the belief that people just love working minimum wage jobs. Plenty of people with degrees make minimum wage by the way.
People are complaining about employee wages and this is just giving me more reason to start your own business. Even if its something small, make yourself your own ceo
@@Dom-xi8je Well if you wanna have a multimillion salary, then you gotta pretty much start a business. If you don't wanna build a business then don't complain about CEOs being millionaires.
@White wolf that figure is because people start a business and put no effort into it, no time into, not much money into it or it generally being a pretty uncompetitive idea like selling iphone cases. If you put the time, money, commitment etc then your not playing odds, your just taking risks. Its not like the lottery where its a predictable percentage of odds, its based on 100 factors.
All I know about top paid CEOs is that they do lines, hookers and vacation on their personal yachts and they include those times spent as part of their working day.
Intresting that he mentioned the "trump tax cuts" playing a role in increasing stock prices legitimately (because it increases profits) but forgot the trillions printed and distributed which increased the stock market a lot more artificially (because it does not affect the company itself).
Well actually those tax breaks went right back into the stock market thus causing an artificial rise in stocks ....aka stock buy backs you seem to forget the 10 trillion dollar covid relief bill was approved by trump well mostly approved by the corporations that own him but then again the stock market would crumble like a house of cards if socialism didn't keep bailing out failing companies and this all goes back further by the repeal of glass steagal and the notion of to big to fail
Trump tax cut increased stock prices (companies got more profits but did not reinvest or increase salary but pour more money to buy back their own stocks - which made stock price increase - which in return secured CEO's high compensation) and current trillions dollars printed increased the stock price (dramatically increase retail investors) are two different issues.
Once people realize that inequality is the feature they sill stop complaining about it. The skillset and value of a ceo is obviously exponentially higher than a bank teller or a cashier. People need to focus on themselves and their skillsets to make themselves valuable. If you can be replaced in a day by someone that will do your job for less, then you need to do more.
There are scattered examples of poor performing CEOs making a killing, but by and large a good CEO is worth many multiples of their salary. They are steering the ship, and you better have a competent person at the helm or your firm is going to run into an iceberg. It’s a stressful job, and the hours are outrageous.
@Eve R. Yeah, because corporations have made it so hard for labor unions to be formed. As it stands corporations can lie blatantly to us and get away with it.
It's very simple, become more valuable. They didn't provide the solution because they want to bring compensation down they never consider that the right way would be to upgrade your value. But I guess that would be the hard way and that's why it's easier to cut compensation from other people than to become better yourself
Take a look at Dan Price. CEO of Gravity Payments. He raised everyone's salary to $70k while also taking a $1000000 pay cut. He didn't do it because the company was struggling. In fact the company has grown since then.
Lol that’s a a fintech company that probably employs less than 1000 people Go try that with a construction company or a farm and see how far it would Be sustainable
@@islamiconasheed Actually he's right. If you aren't doing the job generating income, wtf you need a CEO for. The money is pouring in from employees, not one guy at the top. Otherwise, why have employees if he produces so much all by himself?
The pay gap between a CEO and the average worker is NOT what is 'causing anxiety'. 'The anxiety' is not well founded and the questions of genuinely founded anxiety presented are not examples of me looking up to see how much more my CEO makes than me. That isn't what determines if I have food on my table. I thumbs'd up the video though, I like the reports energy and enthusiasm for the work.
CEO pay increase 1322% since 1978 and the stock market capitalization rate grew ~6,400%. While there are more companies on the NYSE today it's clear company evaluations have gone up and they're all competing with other companies for the best CEOs for their brands. Company valuation and CEO pay are highly related especially considering stock compensation and golden parachutes.
Worker productivity is not always attributed to a workers unique talent, skill, or 'above-average' ability as the video was referencing. Productivity may be applied to inventions such as computer, machines, tooling, materials, etc. These do not overlap with a McDonalds worker to say they are irreplaceable or a factory worker to say they are indispensable enough to justify a 50% increase in their pay without another human being saying they will do it for less. The marketability and demand of the average workers skill is still that, average.
The math is simple, who is harder to replace the CEO or the employee? Just look at any job board there are countless job openings for various roles within organisations very rarely do you see vacancies for CEO roles very, very rarely.
Hi AJ Hess, It seems like you are making around 85,000/yr from what you have said. That means an average Indian has to work 535 year's to make what you are making. Don't say the living cost is too low in India. Petrol costs $5.5/gal in India. You are of course, in the top 1% of the whole world. The size of the wallet has nothing to do with contentment. Contentment is where true wealth is. Cheers
Nationalize the labor market and slash top earning wages. Just like they did to the workers by capping their pay. Why should they get bonuses? It's a travesty. Send the money to the workers. Get rid of shareholders it's ruining the livelihood of employees.
Worker should get paid more, I have no problem how much Ceo or Queen of england make ok maybe the Queen is a problem cause she don't do anything in her life , if it brother's then become by yourself one , no one stopping u right???
The best in the sports world receive outsized compensation. The best in the entertainment world receive outsized compensation. The best in the business world receive outsized compensation.
The harder you are to replace the more money the market pays you.... most employees are replaceable, good ceos are not. The same logic applies for sports athletes, famous actors,singers etc. Apart from that, government policies of creating "equality" by printing trillions and keeping interest rates low has caused this massive gap due to the stock market being artificially inflated which automatically boosts ceo compensation which consists mostly of stock options!
@White wolf yes...if you want to replace a good ceo you have to pay what you already paid your previous one if not more.... except this if you mean anything else, you are pretty naive.
@White wolf Exactly, the idea that CEO's are mythical, magical geniuses is baloney. Many of them perform mediocrely or poorly. Even when they fail, they do very well financially.
You can make as much as your CEO. Start your own business. Remember, you aren't a worker, you are a sole entrepreneur. Your "employer" is simply a customer. Think outside the box.
Why don’t you combine all the workers wages in a year against a CEO? Anybody can flip a burger but what one person can make all the huge decisions for a company ..
Umm... 9 times out of 10 those CEOs deserve it. Think about this way, who should make more? The cook or janitor of the ship, or the Captain who's responsible for the cook, janitor & everyone else plus the success of ship as a whole??
@@jamesg7016 the market doesn’t care about your made up wage targets, they care about value added! That being said governments can decide to tax them higher and redistribute the wealth if they wish
@@jamesg7016 so...you're saying it's immoral because they chose the right ideas from others and made the company more profitable? That's not easy at all as you're making it sound like. Also, their salary is FAR smaller than the amount mentioned, their total income comes from the stock options cashed which you didn't even mention.
@@jamesg7016 If I'm coming to your establishment asking for a paycheck, as long as you're within the laws, you make the rules. At the end of the day, I agreed to them. I could very easily take my skills elsewhere and if there is collusion, I could boycott for leverage. Power respects power. Not pity. Think about this as well, do you really think companies care about the plight of BLM? Or do they care about image and ultimately losing customers??
Before piling in the video should split the commentary between start up founder CEO's and mega corp hired CEOs The ones that near killed themselves getting their start up off the ground deserve what they make, just check out the story of Peloton But the career CEOs spat out from the ivy league - I have no sympathy.
2009. Got laid off. Mom killed herself. My step mom convinced my dad I was just a leech in her eyes. Got a business going started making much more. Then they wanted help. Money is all that matter "mom." Go republican capitalism. She should've made better choices.
To be fair, CEO like Elon Musk took $0 as a salary and just have stocks options when the Tesla hits different milestone. Most people just want a paycheck for the hours that they worked. Maybe we can change the compensation structure, and pay employees less wage and give them some equity in their company
Interesting and undeniable fact. The question is how would we design an alternative world such that there's less inequality and we still can maintain productivity growth.
@Jason Wu As your “arguments” go, I don’t think of inequality from a personal perspective. That is, I don’t care if other people make more and I don’t take other people’s stuffs. More seriously, inequality can arise due to a variety of reasons and have consequences. Many imperfections in market allows firms to exploit market power, generate distortions and hinder competition. This leads to more inequality. As firms get bigger, they can further bend the rules to their advantage, potentially leading to a vicious circle. Inequality is not inherently bad (it’s part of all society), but too much inequality can create social instability and breakdowns of social constructs.
it also harms long-term growth & productivity of US if inequality in income/wealth translates to inequality in opportunities of individuals. Talents need not be born rich and should have equal chance as those born from wealthier family.
Hi, even if more equality is achieved; for example, we are able to increase worker compensation. Wouldn’t that just increase the price of goods and services? Then everything will be relatively expensive.
Hollywood actors make tens of millions a year. Professional athletes make tens of millions a year. Viral TH-camrs make millions a year. Comparing your small salary to these high paid people is a pointless thing.
CEOs are so grossly overpaid they can go 10 years without pay and still be fine, but they choose to cut from the base of the foundation. the hardworking people who kept the gears turning are the ones that gets hurt first when companies get in trouble. when the companies does well, the CEO is the one getting the bonus, not the hardworking ground level employees.
"Worker productivity has increased 3.5 times faster than average worker pay since the 1970s." Who is creating this increase in productivity? If workers are creating the increase in productivity, how? Did workers begin working 3.5 times more productively, despite not being paid more? Why would workers do that? If workers are the source of increased productivity, there would have to be some unnoticed innovation that explains that and which many workers began to implement (coincidentally) more or less at the same time. Neither the host nor the guest in the video offer any such explanation. Obviously, the companies which employ the workers created innovations that increased productivity. Companies making workers work harder or work longer hours is also an insufficient explanation for the increase in productivity. Labor is the largest expense companies pay. Every company has a vested interest in reducing its workers' hours of employment. The entire economy is based on labor-saving technology and management approaches. If simply having employees work more hours made a company successful, every company would tell its workers to work the maximum hours possible. Not being responsible for greater productivity gives you absolutely zero claim to the additional value the company creates. Just because you pull a lever that puts the finishing touches on an assembly line product does not mean you should get paid in equal portion to the CEO who ensures the entire process works from start to finish.
@@Fuego958 isn’t that why worker productivity increased? They aren’t working triple full time jobs. So it’s the technology that helped increase it. So what’s up with ur AND? Lmao
wtf are you talkig about?! Productivity has nothing to do with how much, how hard or how long you work! It's an economic term tied to the financial success of an economy or a sector, usually described using GDO. If you don't know the answer to a question you have, you can't just assume/claim that nobody does and go on an insane hypothetical tangent. You made a wrong assumption and drew a bunch of false "conclusions" from there on out, which grew increasingly more ridiculous. That's just nuts.
No because that money would go to the owners not to mention everyone in this country willing pays to see them it’s a fair distribution of wealth between owners and players and the cities that host the teams
You make a very big assumption that celebs and athletes have “less responsibilities.” Athletes often workout multiple times a day and their entire lifestyle is dictated by their career. They have to travel away from their families constantly and make sure they’re mentally and physically sharp. Athletes, like celebs, are thrust into the spotlight and become targets of hate and criticism. Paparazzi follow their toddlers around until their terrified. Being in the spotlight is a 24 hour job. And musicians make their money from writing and performing songs and selling their likeness. You might be surprised at how many musicians are actually in debt to their record labels for decades (if they ever get out at all). And let’s not forget about 3am set times in the freezing cold for some actors. Or the actors who literally have to starve themselves or become obese for roles they take on. Or the risk of failure and poverty many of them took in pursuing their art form. There are certainly a lot of perks that come with being a celebrity. But they’re also looked at like caged animals in a zoo. And a lot of them went through a lot of rough times to get where they are. Katy Perry’s car was repossessed more than once before she earned her success. Maybe try on some empathy. The grass isn’t always as green as you think it is.
There's Earned Income from a very wealthy team owner or entity paid to the pro; who in-a-second can become injured. PASSIVE Income, well sounds like it just comes and once you are the benefactor of the process... I think performers/ athletes: performing are picked by the people to love or follow. 'Where as the wealthy owner could be a jerk and continue and continue. THE well-to-do get that political machine going. Business takes care of it's own to do business. Business writes the TEXTBOOKS, ADVERTISEMENTS,... NEWS that you see to tell you to work hard, do what people want, and they will pay you! That's from the tops' interests, through the tops' business partnerships. Athletics takes skill, strength, speed, etc.. Playing is seen as a meritocracy. Singers get far less than the producers' cut, but I don't think those producers are usually as great at the performing.
With automation, companies make more money than they used to with far fewer employees. Somebody gets all of that money, and that somebody is the CEO. For the record, most don’t deserve it and they definitely didn’t earn it. That’s modern capitalism - the rich stealing from everyone else - for you, and the fruits of your labor especially are not immune to it.
So I see a lot of comments here about skills, education, risk, etc and how doing this and that will help you get ahead. That is both true and not true. It’s expensive to be poor and things like lack of education, healthcare, and transportation for poor communities make it harder for economic mobility to occur. So it’s a combination of luck and skill whether you can get to the top or not so please avoid blanket statements. Regardless of your view on economic policy, one thing is clear. Severe economic inequality leads to societal instability and is a challenge to democratic institutions. History has shown us this many times in the form of the French Revolution, Russian Revolution, rise of the Nazis, etc, and everything that followed an event of economic inequality resulted in dictators and worse. There is nothing wrong with compensating properly for different skills and level of skill, but at some point if it gets to ridiculous levels for reasons that aren’t even skill based, it’s going to be a problem for all of us. CEOs included.
1. In order to become a ceo it takes a bachelors degree & business school + years of management experience. 2. Most of a ceo's annual earnings comes from investment options, commissions, and bonuses. Not their actual base salary. 3. If you don't like your pay, then quit the job and find one that has a salary that satisfies you 4. Minimum wage jobs were made for teenagers who want extra spending money not for someone to raise a family, if you can't feed them don't breed them 5. If a low paying job is all you can get then that's your fault for not having the skills, education, or experience needed for a good job
4. Minimum wage jobs were made for teenagers who want extra spending money not for someone to raise a family, if you can't feed them don't breed them.....But then you probably also want to make abortions illegal, am I right?
If you reduce compensation to ceo that money will have to spread over 50 k employees so that will mean they get 5 more per an hour. The move is benefits stock options equity tuition child care lunch room free etc😊
This is the dumbest video breaking down a very bad angle. There's reasons a CEO of a big company is paid large amounts. I love these videos, this one dropped the ball...
5:22 on the other side ... the workers didn't do anything to increase profits either so the one who takes the greatest risk in the business should get the greatest upside when there is one, why would it be workers who can be replaced at the click of a finger
If you get 300x more money than your best paid employee, this suggests you do the work of 300 of your best paid employees. I really want a CEO show me how exactly they do this ...
there's quality to their work tho, not everyone's hour of work is worth the same
man you have a mindset of an employee so you cannot comprehend it.... I will illustrate it for you on real life example from one company where I worked in 2013. I worked fulltime for one year and was paid 900 eur a month while our CFO was doing nothing and earning 20x more than me. Why? He went to Brazil for 2 weeks, played golf there with some executives of a big company and returned with a deal which was in millions of eur and could fund my salary and all other employees in the company for half a year. I think the fact that he earned only 20-25 times more than me was actually unfair to him.
@@peterh3213 thats exactly right great example.
@shadowwalker2006 come back the day you take the same risks and responsibilities your CEO does until then ....🤫
@@qasim5279 lot of CEOs don’t take that responsibility
Look at Johnson & Johnson after the whole cancer causing talc product situation
Are their top executives paying the price
Fun fact the modern workforce is now the most educated, most productive and least compensated while companies make record profits
Another Fun Fact: CEO's DON'T make 100 times the average worker at their respective companies on average. That's silly.
They actually make OVER 300 times the average worker at their respective companies. In fact, the CEO of Walmart makes OVER 900 times.
Some of these people make 300+ k a week, a freaking week, and can't pay workers a living wage
In 2008, I was working as an assistant front desk manager for a big large company. The HR manager came and told me I had to take a pay cut cause revenue was way down or I can be laid off and get unemployment. I stayed, took a 20% pay cut (over $200) and worked 10 more hours a week. That same year, the hotel got the coveted five stars and four diamond rating, the GM of the hotel got over a million bonus and a big raise.
So, take a long look in the mirror.
You played yourself.
@@sess9561 No. This is a lie told to you by parasites.
@@javiersanabria7513 its a broken system
So screwed up, squeeze the folks who run the business, and glutinous at the top, like hunger games capitol where they drink something to throw up so they can eat more while others starve
this must change.. Corporations have become mini 'empires' where the People at the top get all the money and glory for the work that the ones at the bottom are actually doing for almost nothing. We don't remember the people that built the Pyramids, only the 'Kings' .
I compared my salary to my CEO’s salary. Let me say that I made a pretty good salary. I determined that the CEO earned my annual salary in the first 2 1/2 days of the year.
Well, this will be interesting.
*Grabs popcorn and gets ready to watch the comment section take off
this video is propaganda that mis educates people about the free market and how it works
Instead of commenting this about you actually offer something to talk about
@@davidanalyst671 How is this propaganda exactly?
They really need so set a law that stops one employee from making 100000x more than the other employees. Especially when those in management and higher don't do any real work
do you have brain damage?
While watching this entire thing I kept missing the part where they mention the point of this video. What is the message? Are CEOs bad? Should we all become CEOs? Is there anything the average joe can do to in any way fight these numbers?
The only way to fight these numbers is to convince banks to let you borrow millions of dollars in long-term, fixed-rate, principal-amortizing (interest only works too) loans to buy real estate, then borrow against the value of said real estate in the form of cash-out refinances as it inflates in value; then, use that borrowed money to invest in any business opportunity that's decent in value, and repeat said process till you can finally begin to amass enough resources to fund the building of a self-sustaining agricultural and industrial commune in the middle of the Nevada desert. It takes 5-10 years to get to that step, though.
It literally tells you in the title of the video. That's the message: why they make 100x more.
I thought the video very clearly delivered what the title promised.
Why do they earn so much?
- Because of a company's internal notion that stock rises are tied to excec performance
- Because of a rise in the gross domestic output that isn't reflected in worker's wages rising....
and so on and so forth.
"Are CEOs Bad" well CNBC isn't going to make a claim like that in a story they are covering. But the interviewee says it all in his answer to the question: is the solution to closing this gap obvious: he says "shame", shaming these people and company
@Jason Wu typical worker compensation has increased by 18% since 1978….. there is ABSOLUTELY something wrong with these numbers
Can I dislike this more than once?
So the CNBC make it reporter makes around $85,409.25
my thoughts exactly - broke up the calculator immediately, haha
Pretty bad if they live in New York
Terrible.
Lol that is so false. That’s pretty manageable for one person in NYC
@@justdidthis is not. I was on $130k in New York and rent sucked most away . Good salary for good standard of life in NY at least $180k. Poverty line is around $60k
These days, CEOs manage with a team of skilled and mostly highly paid executives. They also work with highly paid boards of directors. It doesn't make sense that they would earn significantly more than management below them. Would you pay astronomical dollars to someone who has to have their hand held? To someone who manages a company that doesn't do anything spectacular? A company that has a captured market for years? A company that has static growth?
Ya some have it easy. There was a story though of some brother taking over as ceo of some airline or airplane company from the family and then bankrupting the company within a year. Some small companies actually give ownership to employees. It's their company, so they can do what they want with it.
That's not entirely accurate. That's like saying that the President doesn't work hard and has his "hand held" because he has generals, secretaries, senators, mayors, police chiefs and whatever.. CEOs certainly work hard keeping things together even though they have it a lot better.
@@MrEVAQ not entirely accurate but there is truth in my comment which refers to the C Suites who become administrators and get paid disproportionate amounts to do their work. Yes some work hard and deserve to get paid well. Value for money is what I say.
@@MrEVAQ I feel like comparing the President of a nation, to a CEO of a glorified casino (big banks) is apples to oranges
@@drunkenn1nja The job is not literally the same, but the hierarchical structures of their jobs are very similar.
She makes 85k a year. That's still pretty dang good 😂
60k after tax…. lol lives in nyc pays 3k a month for rent
@@DFWKICKS living in NYC is a choice.
Lol no .. any where else she’s make $50k before tax
Yes, a very good salary but nowhere near $24,000,000.
@@DFWKICKS not all of nyc is in manhattan. But she probably does lol
easy way to make the pay gap. quit your job and become a CEO of a startup. if everyone is a CEO then no one is under paid lol.
Undercut the company you're working for. Swipe their talent. Become a saboteur by getting the government to investigate their undealt harassment cases.
Easy, ha! Have you done so? Do tell how that is working for you.
@@awgharris exactly, that's the point. What he is really saying is, it's not easy.
If everyone is a CEO then beeing CEO must be so much more work :(
high value, high return. It is just pure dumb to compare CEOs salary to how much the average workers make
The issue is that compensating executives with stock options and stock-related benefits causes many executives to have a short-term focus on the stock price. I. E. cutting salaries, keeping wages low and other things are the result. It helps stock value in the short-run (and therefore their compensation) but typically doesn't promote wise long-term decisions.
On stock compensation, many CEOs would rather pay long-term capital gains tax than the higher short-term capital gains tax.
CEOs will maximize their tax savings via retirement accounts also, even if they have to wait until age 59.5.
Bezos, Musk, Gates, Zuckerberg, Larry Page, just go down the Fortune 500 list…. They hold stock for the long term, sometimes decades.
CEOs aren’t day traders, they think bigger, or they will get fired by the board, shareholders, etc.
restricted stock options are tied to long term performance, 25 mil of jamie dimons 31 mil compensation belonged to this category for instance
There are usually lock in periods before they're allowed to sell the granted stock so if the price drops over a 4-5 year horizon they lose out a lot
@@sammen89 Bezos, Musk, Gates, Zuckerberg, Larry Page
Owner of the company, owner of the company, owner of the company. When they cede control they still choose to invest a part of their portfolio though.
@@sammen89 the company i work for constantly runs through different executives/directors because they can make their profit after only 2-3 years
They should interview that CEO that raised the minimum wage to $70k. Sqwak Alley? The company was performing better and he has cut turnover in half. People have more freedom. And he is still wealthy.
Switching jobs is the only real way to get any sort of substantial raise. Although it still isn't a sure thing until you find the better job and then get it.
Or a promotion within a company
True Forbes had an article on this a while back I believe
You forgot “technology and automation”
Well how well do you know the board of directors 😂😂😂what a response
Wtf is the point of this video?!?!
To apparently say that CEO pay id causing all of the problems in the world
Just a bunch of cry babies jealous of people making more than them that can’t manage their money all while having brand new cars ect
@@truckingmoney485 this is the worst take I'll read all day.
@@KeaneKamina Nah its a pretty real take. You gotta take huge risk and literally work 24/7 to be a CEO. Most workers rather just come home and watch Netflix instead of grind and invest their money
@@KeaneKamina it’s a fine take. Can’t do anything about the free market and what the top of the top are earning. But you can certainly stop financing new cars and get on a budget
Who else immediately paused the video to divide 24 million by 281
She's still making good money
$85k is still good money
@@ladymallowyt Not in NYC
@@grahamw2455 NYC sounds more expensive than living in London
AJ looks like a mix of Ellen and Alice from the Brady Bunch
don't care when CEO makes billions, but come on, pay your employees livable wage at the least.
this is propaganda. If the employees all live together in dumpy towns eating dumpy food, then that is the livable wage. Go get a tiny house, and maybe learn more about how economics works
@@davidanalyst671 That’s not how economics works at all.
@Peter Cheng Exactly...
@IAmDeshaun No, that is not what livable means either. Livable means having enough money for food, groceries, rent, without having to work 3 jobs. This also applies to their children. I doubt anyone wants to see children starve. In almost every state minimum wage is too low to afford basic necessities.
@IAmDeshaun So the logical flaw in your argument is the belief that people just love working minimum wage jobs. Plenty of people with degrees make minimum wage by the way.
People are complaining about employee wages and this is just giving me more reason to start your own business. Even if its something small, make yourself your own ceo
I get this mentality but not everyone is bred to build a business
@@Dom-xi8je thank you, not everyone wants a business… and a lot of businesses are over saturated now
I don't recommend everyone starting a business but I do recommend a second or third source of income. Everyone isn't built to lead.
@@Dom-xi8je Well if you wanna have a multimillion salary, then you gotta pretty much start a business. If you don't wanna build a business then don't complain about CEOs being millionaires.
@White wolf that figure is because people start a business and put no effort into it, no time into, not much money into it or it generally being a pretty uncompetitive idea like selling iphone cases. If you put the time, money, commitment etc then your not playing odds, your just taking risks. Its not like the lottery where its a predictable percentage of odds, its based on 100 factors.
All I know about top paid CEOs is that they do lines, hookers and vacation on their personal yachts and they include those times spent as part of their working day.
85k should be enough to pay for a better hairdresser 🤣
Some CEOs are worth every penny. Some should simply be fired without compensation.
No CEO is worth $1m per year.
So many distractions out there with regards to pay discrepancy. Meanwhile the truly stark and significant contrast is this CEO to worker pay gap.
where's Dan Price when you need him?
"I'll nEvER MaKe As MuCh As mY CEO!"
Not with that attitude....
She said the chances are pretty low slim to none
Which statistically she’s right
The comments are about to be spicy!
If you want to earn CEO salary, be the CEO. Go apply and become a CEO or start your own business.
How can I apply to become a ceo ?
Intresting that he mentioned the "trump tax cuts" playing a role in increasing stock prices legitimately (because it increases profits) but forgot the trillions printed and distributed which increased the stock market a lot more artificially (because it does not affect the company itself).
True but We weren't supposed to know that😂
Well actually those tax breaks went right back into the stock market thus causing an artificial rise in stocks ....aka stock buy backs you seem to forget the 10 trillion dollar covid relief bill was approved by trump well mostly approved by the corporations that own him but then again the stock market would crumble like a house of cards if socialism didn't keep bailing out failing companies and this all goes back further by the repeal of glass steagal and the notion of to big to fail
Trump tax cut increased stock prices (companies got more profits but did not reinvest or increase salary but pour more money to buy back their own stocks - which made stock price increase - which in return secured CEO's high compensation) and current trillions dollars printed increased the stock price (dramatically increase retail investors) are two different issues.
Maybe you can start your own company and take all of the risk that business owners take. Unnecessary jealousy
What risks did the CEO (not founder) take to earn exponential money than the best engineer in the company that actually makes the product?
Once people realize that inequality is the feature they sill stop complaining about it. The skillset and value of a ceo is obviously exponentially higher than a bank teller or a cashier. People need to focus on themselves and their skillsets to make themselves valuable. If you can be replaced in a day by someone that will do your job for less, then you need to do more.
There are scattered examples of poor performing CEOs making a killing, but by and large a good CEO is worth many multiples of their salary. They are steering the ship, and you better have a competent person at the helm or your firm is going to run into an iceberg. It’s a stressful job, and the hours are outrageous.
And the Japanese were getting mad at Ghosn for making
This is a parody, right???
Yo, that's the yacht from Point Break (2015). Cool!
So you think a normal employee should be paid equally as the CEO ? thats a no brainer.
I genuinely don't have the drive, to work as much as CEOs too. I don't even want too earn that much, it's too much work.
This video has a lot of things in it, but does not explain how we can go about fixing it.
@Eve R. Yeah, because corporations have made it so hard for labor unions to be formed. As it stands corporations can lie blatantly to us and get away with it.
Only way to fix is to make everyone poor.
@@Berlintheking The CEO's are doing a good job with keeping pay low, and killing off any labor unions
It's very simple, become more valuable. They didn't provide the solution because they want to bring compensation down they never consider that the right way would be to upgrade your value. But I guess that would be the hard way and that's why it's easier to cut compensation from other people than to become better yourself
So she make bout 86k a year
Take a look at Dan Price. CEO of Gravity Payments. He raised everyone's salary to $70k while also taking a $1000000 pay cut.
He didn't do it because the company was struggling. In fact the company has grown since then.
Lol that’s a a fintech company that probably employs less than 1000 people
Go try that with a construction company or a farm and see how far it would
Be sustainable
@@danielmankinde1706 I don't see Bechtels CEO laying concrete. Fact: executives are the least important people to a company.
@@TheHauntedKiwi Wow, what BS
@@islamiconasheed Actually he's right. If you aren't doing the job generating income, wtf you need a CEO for. The money is pouring in from employees, not one guy at the top. Otherwise, why have employees if he produces so much all by himself?
CEOs are paid in stocks? 100% vax?
The pay gap between a CEO and the average worker is NOT what is 'causing anxiety'. 'The anxiety' is not well founded and the questions of genuinely founded anxiety presented are not examples of me looking up to see how much more my CEO makes than me. That isn't what determines if I have food on my table.
I thumbs'd up the video though, I like the reports energy and enthusiasm for the work.
CEO pay increase 1322% since 1978 and the stock market capitalization rate grew ~6,400%. While there are more companies on the NYSE today it's clear company evaluations have gone up and they're all competing with other companies for the best CEOs for their brands. Company valuation and CEO pay are highly related especially considering stock compensation and golden parachutes.
Worker productivity is not always attributed to a workers unique talent, skill, or 'above-average' ability as the video was referencing. Productivity may be applied to inventions such as computer, machines, tooling, materials, etc. These do not overlap with a McDonalds worker to say they are irreplaceable or a factory worker to say they are indispensable enough to justify a 50% increase in their pay without another human being saying they will do it for less. The marketability and demand of the average workers skill is still that, average.
The title is so misleading. They don’t even explain why the CEOs make so much money
What's up with this channel, first ppl promoting their TH-cam channels and now this video, it's all clickbait BS lately. Am considering unsubbing.
The math is simple, who is harder to replace the CEO or the employee? Just look at any job board there are countless job openings for various roles within organisations very rarely do you see vacancies for CEO roles very, very rarely.
That’s because most CEO’s are NOT pulled from a job posting. You have recruiters trying to reach out to potential candidates
And the responsibility
Did you seriously expect to see an opening for CEO on ziprecruiter? 😂 You don’t need to be talking about simple math. Just simple logic.
@@topcomment3816 Can’t imagine a CEO looking in indeed for their next job lol
@@topcomment3816 What I work for a charity and the CEO role was advertised on The Guardian job section. It happens but seldom.
Great segment!
Hi AJ Hess, It seems like you are making around 85,000/yr from what you have said. That means an average Indian has to work 535 year's to make what you are making. Don't say the living cost is too low in India. Petrol costs $5.5/gal in India. You are of course, in the top 1% of the whole world. The size of the wallet has nothing to do with contentment. Contentment is where true wealth is.
Cheers
Why is there a random Yacht clip. Haha
Nationalize the labor market and slash top earning wages. Just like they did to the workers by capping their pay. Why should they get bonuses? It's a travesty. Send the money to the workers. Get rid of shareholders it's ruining the livelihood of employees.
SOCIALISM???
Worker should get paid more, I have no problem how much Ceo or Queen of england make ok maybe the Queen is a problem cause she don't do anything in her life , if it brother's then become by yourself one , no one stopping u right???
The best in the sports world receive outsized compensation.
The best in the entertainment world receive outsized compensation.
The best in the business world receive outsized compensation.
The harder you are to replace the more money the market pays you.... most employees are replaceable, good ceos are not.
The same logic applies for sports athletes, famous actors,singers etc.
Apart from that, government policies of creating "equality" by printing trillions and keeping interest rates low has caused this massive gap due to the stock market being artificially inflated which automatically boosts ceo compensation which consists mostly of stock options!
Well said!
@White wolf yes...if you want to replace a good ceo you have to pay what you already paid your previous one if not more.... except this if you mean anything else, you are pretty naive.
@White wolf Exactly, the idea that CEO's are mythical, magical geniuses is baloney.
Many of them perform mediocrely or poorly.
Even when they fail, they do very well financially.
@@shanep.9442 So why don't you become a CEO?
@@KGSTUNNERJ I was a CEO for 4 years.
You can make as much as your CEO. Start your own business. Remember, you aren't a worker, you are a sole entrepreneur. Your "employer" is simply a customer. Think outside the box.
It's rare to find a great journalist who is also entertaining, great piece AJ
In my country we are still working with 2013 salary
In my country, engineer get paid the same salary in 1995
@@shalala8628 what country?
@@19910602011 malaysia
Why don’t you combine all the workers wages in a year against a CEO? Anybody can flip a burger but what one person can make all the huge decisions for a company ..
The wages for workers don’t even keep up with inflation lmao
@@jamesfield6141 facts
Can i get 11 minutes of my life back?
All CEO’s should be like Dan Price, CEO of gravity payments
Umm... 9 times out of 10 those CEOs deserve it. Think about this way, who should make more? The cook or janitor of the ship, or the Captain who's responsible for the cook, janitor & everyone else plus the success of ship as a whole??
@@jamesg7016 you get paid what you’re worth on average. If companies want to attract good ceos that have to pay well
@@jamesg7016 the market doesn’t care about your made up wage targets, they care about value added! That being said governments can decide to tax them higher and redistribute the wealth if they wish
@@jamesg7016 so...you're saying it's immoral because they chose the right ideas from others and made the company more profitable? That's not easy at all as you're making it sound like. Also, their salary is FAR smaller than the amount mentioned, their total income comes from the stock options cashed which you didn't even mention.
@@jamesg7016 If I'm coming to your establishment asking for a paycheck, as long as you're within the laws, you make the rules. At the end of the day, I agreed to them. I could very easily take my skills elsewhere and if there is collusion, I could boycott for leverage. Power respects power. Not pity. Think about this as well, do you really think companies care about the plight of BLM? Or do they care about image and ultimately losing customers??
@@jamesg7016 I agree with you but we live in a capitalistic society. It is what it is.
AJ looks like a young Sean Penn
Before piling in the video should split the commentary between start up founder CEO's and mega corp hired CEOs The ones that near killed themselves getting their start up off the ground deserve what they make, just check out the story of Peloton But the career CEOs spat out from the ivy league - I have no sympathy.
2009. Got laid off. Mom killed herself. My step mom convinced my dad I was just a leech in her eyes. Got a business going started making much more. Then they wanted help. Money is all that matter "mom." Go republican capitalism. She should've made better choices.
To be fair, CEO like Elon Musk took $0 as a salary and just have stocks options when the Tesla hits different milestone.
Most people just want a paycheck for the hours that they worked. Maybe we can change the compensation structure, and pay employees less wage and give them some equity in their company
Maybe equity doesn’t pay the bills hard money does
@@MrHollister26 exactly, CEO takes on the risks of just getting stocks. Employees took less risks and getting guaranteed money for hours they worked.
@@TheGogetassj and they buy in the company before some employees are even born
He was already a millionaire at that point, he didn’t really need a paycheck
@@MrHollister26 You can sell your equity for hard money.
Ask Laurence Mitchell why he makes more than an iron worker that works 100x harder than he does on his laptop.
Interesting and undeniable fact. The question is how would we design an alternative world such that there's less inequality and we still can maintain productivity growth.
@Jason Wu As your “arguments” go, I don’t think of inequality from a personal perspective. That is, I don’t care if other people make more and I don’t take other people’s stuffs.
More seriously, inequality can arise due to a variety of reasons and have consequences. Many imperfections in market allows firms to exploit market power, generate distortions and hinder competition. This leads to more inequality. As firms get bigger, they can further bend the rules to their advantage, potentially leading to a vicious circle. Inequality is not inherently bad (it’s part of all society), but too much inequality can create social instability and breakdowns of social constructs.
it also harms long-term growth & productivity of US if inequality in income/wealth translates to inequality in opportunities of individuals. Talents need not be born rich and should have equal chance as those born from wealthier family.
Alternative will produce Venezuela.
AJ: keep doing reports as tight as this and you’ll soon *BE* the CEO. Cheers and thanks!
This is where all the inequality is, not racism.
Hi, even if more equality is achieved; for example, we are able to increase worker compensation. Wouldn’t that just increase the price of goods and services? Then everything will be relatively expensive.
85k $ is not that bad u know
Hollywood actors make tens of millions a year. Professional athletes make tens of millions a year. Viral TH-camrs make millions a year. Comparing your small salary to these high paid people is a pointless thing.
Those aren't CEOs lmao
This is why we need to break out pitchforks
CEOs are so grossly overpaid they can go 10 years without pay and still be fine, but they choose to cut from the base of the foundation. the hardworking people who kept the gears turning are the ones that gets hurt first when companies get in trouble. when the companies does well, the CEO is the one getting the bonus, not the hardworking ground level employees.
"Worker productivity has increased 3.5 times faster than average worker pay since the 1970s." Who is creating this increase in productivity? If workers are creating the increase in productivity, how? Did workers begin working 3.5 times more productively, despite not being paid more? Why would workers do that? If workers are the source of increased productivity, there would have to be some unnoticed innovation that explains that and which many workers began to implement (coincidentally) more or less at the same time. Neither the host nor the guest in the video offer any such explanation. Obviously, the companies which employ the workers created innovations that increased productivity.
Companies making workers work harder or work longer hours is also an insufficient explanation for the increase in productivity. Labor is the largest expense companies pay. Every company has a vested interest in reducing its workers' hours of employment. The entire economy is based on labor-saving technology and management approaches. If simply having employees work more hours made a company successful, every company would tell its workers to work the maximum hours possible.
Not being responsible for greater productivity gives you absolutely zero claim to the additional value the company creates. Just because you pull a lever that puts the finishing touches on an assembly line product does not mean you should get paid in equal portion to the CEO who ensures the entire process works from start to finish.
Is greater productivity due to computers and tech? 1970s there wasn’t as much as now
@@gavip24 And...
@@Fuego958 isn’t that why worker productivity increased? They aren’t working triple full time jobs. So it’s the technology that helped increase it. So what’s up with ur AND? Lmao
wtf are you talkig about?! Productivity has nothing to do with how much, how hard or how long you work!
It's an economic term tied to the financial success of an economy or a sector, usually described using GDO.
If you don't know the answer to a question you have, you can't just assume/claim that nobody does and go on an insane hypothetical tangent.
You made a wrong assumption and drew a bunch of false "conclusions" from there on out, which grew increasingly more ridiculous. That's just nuts.
How about pro athletes and celebrities making the same with less responsibilities? Should they be paid less too?
No because that money would go to the owners not to mention everyone in this country willing pays to see them it’s a fair distribution of wealth between owners and players and the cities that host the teams
Most pro athletes have powerful unions that split the league revenue pretty well. In the nba it’s 50/50 between the workers and the owners
You make a very big assumption that celebs and athletes have “less responsibilities.” Athletes often workout multiple times a day and their entire lifestyle is dictated by their career. They have to travel away from their families constantly and make sure they’re mentally and physically sharp. Athletes, like celebs, are thrust into the spotlight and become targets of hate and criticism. Paparazzi follow their toddlers around until their terrified. Being in the spotlight is a 24 hour job. And musicians make their money from writing and performing songs and selling their likeness. You might be surprised at how many musicians are actually in debt to their record labels for decades (if they ever get out at all). And let’s not forget about 3am set times in the freezing cold for some actors. Or the actors who literally have to starve themselves or become obese for roles they take on. Or the risk of failure and poverty many of them took in pursuing their art form. There are certainly a lot of perks that come with being a celebrity. But they’re also looked at like caged animals in a zoo. And a lot of them went through a lot of rough times to get where they are. Katy Perry’s car was repossessed more than once before she earned her success. Maybe try on some empathy. The grass isn’t always as green as you think it is.
@@alyssahubbell5160 so the CEOs just got their money easily?
There's Earned Income from a very wealthy team owner or entity paid to the pro; who in-a-second can become injured. PASSIVE Income, well sounds like it just comes and once you are the benefactor of the process... I think performers/ athletes: performing are picked by the people to love or follow. 'Where as the wealthy owner could be a jerk and continue and continue. THE well-to-do get that political machine going. Business takes care of it's own to do business. Business writes the TEXTBOOKS, ADVERTISEMENTS,... NEWS that you see to tell you to work hard, do what people want, and they will pay you! That's from the tops' interests, through the tops' business partnerships. Athletics takes skill, strength, speed, etc.. Playing is seen as a meritocracy. Singers get far less than the producers' cut, but I don't think those producers are usually as great at the performing.
Lol eat the rich
true..but how often do companies get tax cuts? I think dude is being disingenous...CEOs deserve EVERY penny in my opinion
Man this video was boring. Which is a shame, because I find AJ to be a great video host
Sounds like socialism to me
It should the law that CEOs should get paid minimum wage.
I think your title is wrong, it should be changed to 1000x as much, not 100.
We made record profits, pizza party!!
This is the biggest atrocity of our species.
With automation, companies make more money than they used to with far fewer employees. Somebody gets all of that money, and that somebody is the CEO. For the record, most don’t deserve it and they definitely didn’t earn it. That’s modern capitalism - the rich stealing from everyone else - for you, and the fruits of your labor especially are not immune to it.
The only one who can save Skyrim now is Jarl Marx.
1st: am I the only one not understanding this video?
2nd: why is that economist blink so much like he’s lying/holding his tongue?
Interesting. Now I know more about why “CEOs make 100x more than their workers.”
That’s because workers are modern-day slaves
So I see a lot of comments here about skills, education, risk, etc and how doing this and that will help you get ahead. That is both true and not true. It’s expensive to be poor and things like lack of education, healthcare, and transportation for poor communities make it harder for economic mobility to occur. So it’s a combination of luck and skill whether you can get to the top or not so please avoid blanket statements.
Regardless of your view on economic policy, one thing is clear. Severe economic inequality leads to societal instability and is a challenge to democratic institutions. History has shown us this many times in the form of the French Revolution, Russian Revolution, rise of the Nazis, etc, and everything that followed an event of economic inequality resulted in dictators and worse. There is nothing wrong with compensating properly for different skills and level of skill, but at some point if it gets to ridiculous levels for reasons that aren’t even skill based, it’s going to be a problem for all of us. CEOs included.
Great observation man
Correct. It is important to add that the government is not the solution. A weak US dollar and inflation hurts the people on the bottom
Yup that’s America great country no surprises there you work hard and smart
Because they run the company and running big companies is not a joke !
1. In order to become a ceo it takes a bachelors degree & business school + years of management experience.
2. Most of a ceo's annual earnings comes from investment options, commissions, and bonuses. Not their actual base salary.
3. If you don't like your pay, then quit the job and find one that has a salary that satisfies you
4. Minimum wage jobs were made for teenagers who want extra spending money not for someone to raise a family, if you can't feed them don't breed them
5. If a low paying job is all you can get then that's your fault for not having the skills, education, or experience needed for a good job
4. Minimum wage jobs were made for teenagers who want extra spending money not for someone to raise a family, if you can't feed them don't breed them.....But then you probably also want to make abortions illegal, am I right?
@@ModoNayr that has nothing to do with what was said
The greed is celebrated on this channel
If you reduce compensation to ceo that money will have to spread over 50 k employees so that will mean they get 5 more per an hour. The move is benefits stock options equity tuition child care lunch room free etc😊
I guess the only way to make as much as a CEO is to become one 🤷
Unions make it easier to collectively bargain. That’s not a reason why wages are sluggish-if anything it’s why wages have increased.
This is the dumbest video breaking down a very bad angle. There's reasons a CEO of a big company is paid large amounts. I love these videos, this one dropped the ball...
What are the reasons that justify them making 100x an average salary?
U ain’t making it to the C-suite hayden, keep dreaming
5:22 on the other side ... the workers didn't do anything to increase profits either so the one who takes the greatest risk in the business should get the greatest upside when there is one, why would it be workers who can be replaced at the click of a finger
Bad video. Didn’t answer anything.